OUTLOOK

We saw a deceleration in the growth momentum for our products and services since the second half of 2021 compared to exceptional growth in the prior year, and we expect this trend to continue through 2022 as a result of the high base effect seen in 2021.

In addition, we have continuously been evaluating and investing into new growth areas and to build out Razer’s unique gaming ecosystem. Many of these new growth areas require significant investments and time to prove out the business case.

Recent efforts include extending our Hardware offerings to gaming chairs and lifestyle categories will require investments and time to build up logistics and distribution capabilities as these are different from the typical peripherals or systems logistics partners.

With regard to our Services business, as outlined in our interim report for the six months ended June 30, 2021, we intend to expand into regions internationally for Razer Gold. For Razer Fintech, we seek to scale TPV aggressively and expand geographically across the Southeast Asia region. These geographical expansions require investments to build up in country partners and teams to be able to drive growth.

In addition, we intend to explore areas such as decentralized finance and investments in the metaverse which require significant investments.

However, before we start to see the fruits, these growth areas will take time to fully realise, will require additional spending in our operating expenses and may affect the short- to medium-term business performance.

BY GAMERS. FOR GAMERS.